Durango Casino Unveils $120M Expansion, $385M Construction Phase to Start Jan. 4
Durango Casino & Resort announced a $120 million completed expansion and plans a further $385 million build beginning Jan. 4, 2026.
LISTEN TO THIS ARTICLE:Red Rock Resorts on Monday celebrated the completion of a $120 million expansion at its Durango Casino & Resort in southwest Las Vegas and disclosed a second, much larger phase set to break ground on Jan. 4, 2026. The new work will add roughly 275,000 square feet – including about 400 slot machines, a 36-lane bowling center, a multi-screen movie theater, new restaurants and entertainment spaces – with an anticipated construction timeline of approximately 18 months.
The soft opening event highlighted an immediate addition of 25,000 square feet of casino floor, a new 8,000-square-foot high-limit slot salon with 120 machines and a bar, and a parking structure of about 1,800 spaces. Overall, Durango increased its slot inventory by roughly 250 machines to reach a total of about 2,200.
Dave Horn, vice president and general manager of Durango, led the ribbon-cutting for the high-limit salon and reflected on the property’s strategy to elevate guest amenities. “We wanted to put it on a pedestal as one of the best high-limit rooms in the city, and I think we’ve done that,” Horn said. “It’s an amenity level of what our guests are looking for, whether local or out of town, and that’s what we achieved.”
Horn acknowledged the operational strain of back-to-back projects but said the team is experienced at operating amid construction and is targeting a July 2027 opening for the next major phase. “That’s going to help, because we now have a whole package we can advertise from a guest experience”, he said.
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Market Impact and Financial Outlook
The announcement arrives as Red Rock reports record third-quarter net revenue and adjusted EBITDA, posting the company’s fifth consecutive quarter of record adjusted EBITDA and near-record margins. Executives attribute part of that momentum to Durango drawing new local customers and increasing play from existing patrons.
Truist Securities analyst Barry Jonas, who met with Red Rock CFO Stephen Cootey this week, framed the locals market as a durable segment and affirmed his Buy rating on the stock. “The larger $385 million 2.0 expansion should drive growth further”, Jonas wrote. “The 2.0 shouldn’t delay any other pipeline projects, with further details potentially revealed around the fourth quarter of 2026. Construction continues across Green Valley Resort and Sunset Station renovations (in Henderson) and while there will be some disruption in the first half of 2026, management continues to target net ROI of 20%.”
Jonas also relayed management’s view that the local market is “fundamentally different and well protected” compared with current softness on the Las Vegas Strip. He cited Red Rock’s heavier reliance on gaming, which accounts for roughly 70%-80% of revenue, and a customer mix that includes frequent repeat visitors; management estimates that about half of its customers visit properties approximately four times per month.
On ROI and disruption, Jonas noted that Durango’s 2.0 expansion is expected to yield a 20% return, although management anticipates a potentially slower ramp-up. “Ultimately, management is unsure what the disruption impact will be, but is hopeful it will be minimal”, Jonas said. “In the meantime, given the 18-month time frame, customers should be able to adapt their habits and adjust accordingly.”
Red Rock has forecasted modest construction headwinds elsewhere: roughly $8 million in disruption at Green Valley Resort and $1 million to $1.5 million at Sunset Station in the fourth quarter, with an expected similar $9 million impact in the first and second quarters of 2026. Management views 2028 as the first full year clear of disruption and the first full-year to realize Durango North’s benefit, assuming mid-2027 completion.
Executives also welcomed tax advantages from the federal “One Big Beautiful Bill” passed last summer, which provides accelerated depreciation and other benefits. Jonas pointed out that Red Rock expects to be non-taxpaying in 2025 with additional relief in 2026 and sees potential consumer stimulus effects from larger tax refunds.
Beyond Durango, Red Rock is progressing small-format tavern openings – two are live with five planned in 2026 – and continues planning for other development opportunities in the Las Vegas valley. The company may also monetize surplus land holdings near Cactus Avenue and Las Vegas Boulevard South, where a parcel currently contributes an estimated $4 million to $5 million of annual EBITDA from rent.
With significant residential growth projected, Red Rock expects more than 6,000 homes within a three-mile radius over the coming years. Management argues the southwest valley remains underserved and that Durango’s expanded offering will help capture incremental market share from nearby neighbourhoods.
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